Oil and Natural Gas Corporation Limited Just Beat EPS By 7.6%: Here's What Analysts Think Will Happen Next
Last week saw the newest quarterly earnings release from Oil and Natural Gas Corporation Limited (NSE:ONGC), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of ₹2.0t were in line with what the analysts predicted, Oil and Natural Gas surprised by delivering a statutory profit of ₹9.46 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Oil and Natural Gas' 20 analysts are now forecasting revenues of ₹7.90t in 2027. This would be a notable 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 19% to ₹41.31. In the lead-up to this report, the analysts had been modelling revenues of ₹7.98t and earnings per share (EPS) of ₹41.98 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Oil and Natural Gas
The analysts reconfirmed their price target of ₹295, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Oil and Natural Gas, with the most bullish analyst valuing it at ₹405 and the most bearish at ₹210 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Oil and Natural Gas' past performance and to peers in the same industry. It's clear from the latest estimates that Oil and Natural Gas' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 7.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Oil and Natural Gas is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹295, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Oil and Natural Gas going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Oil and Natural Gas that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.